As iPhone Demand Picks Up, Is Now the Time to Buy Apple Stock?

Core Insights - Apple reported solid revenue growth in its fiscal 2025 fourth quarter, driven by strong iPhone sales expectations for the holiday season [2] - Despite the positive results, the stock did not see significant gains due to prior strong performance earlier in the fall [2] iPhone Performance - The iPhone remains Apple's largest revenue source, contributing approximately 50% of total sales, with a 13% revenue increase in fiscal Q3 as consumers upgraded before potential tariff impacts [4] - In the latest quarter, iPhone revenue grew 6% to $49 billion, slightly below the $50.2 billion analyst estimate due to supply constraints [4][5] - For fiscal 2026 Q1, Apple anticipates double-digit growth in iPhone sales, supported by strong initial demand for the iPhone 17 [5] Other Product Segments - Mac sales increased by 13% year over year to $8.7 billion, exceeding analyst expectations of $8.6 billion, driven by the MacBook Air and growth in emerging markets [5] - Wearables sales were $9 billion, surpassing the $8.5 billion consensus, while iPad sales were $6.95 billion, meeting expectations [6] - Total product segment sales rose by 5% to $73.7 billion, with product gross margin improving by 170 basis points despite $1.1 billion in tariff-related costs [6] Regional Performance - Revenue in China declined by 4%, attributed to iPhone supply constraints, but management expects sales growth in the upcoming quarter [7] Services Segment - The services segment, including the App Store, iCloud, and Apple Pay, grew by 15% to $28.8 billion, exceeding the $28.2 billion analyst consensus, with notable growth in App Pay revenue [8] - The gross margin for the services segment was 75.3%, significantly higher than the product segment margin [8]